Should this EMD have been lost to HUD?

[Dave Egan]

As an investor in HUD properties, the expectation is always to lose an occasional deposit, but this time?
My cash offer was accepted with 45 days to close. 45 days later, HUD could not close. The title officer said HUD did not have ownership of the property because the foreclosure had much incomplete documentation and the property must be returned to the bank to have the discrepancies fixed and re-foreclose. OK, got into one of those, so now what. The RE broker tells me HUD will allow extensions until the situation is straightened out or cancel and get my deposit back. Doing extensions ad infinitum seemed unreasonable so there seemed to be no other alternative than to go with the cancellation. A week later HUD says, sorry, you're an investor--no refund. Love to hear your thoughts on this one.